Information disclosure and full surplus extraction in mechanism design

Daniel Krähmer

Journal of Economic Theory, 2020, vol. 187, issue C

Abstract: I study mechanism design settings with quasi-linear utility where the principal can provide agents with additional private information about their valuations beyond the private information they hold at the outset. I demonstrate that the principal can design information and a mechanism so as to implement the same outcome as if the additional information was publicly known. The key idea is that the principal secretly randomizes over information structures which allows her to cross-check the consistency of agents' reports. As an implication, the principal can fully extract the first-best surplus in a large class of cases.

Keywords: Information design; Mechanism design; Quasi-linear utility; Rent extraction (search for similar items in EconPapers)
JEL-codes: D82 H57 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053120300259
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:187:y:2020:i:c:s0022053120300259

DOI: 10.1016/j.jet.2020.105020

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().